Tourism Supply Chains: A Conceptual Framework
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1 Tourism Supply Chains: A Conceptual Framework Pairach Piboonrungroj Logistics and Supply Chain Research Centre Faculty of Economics, Chiang Mai University MSc in Logistics and Supply Chain Management Mae Fah Luang University, Chiang Rai March 2013
2 International tourist arrival (million) The World Tourism UNWTO (2009)
3 The Tourism Supply Chains Foods & Beverage Input providers Infrastructure Equipment Water & Energy Trip arrangement Freight Transport Direct access via website Via Tour operator Lodging Tourism service providers Attractions Catering Transport Via Travel agency Service delivery Service delivery Service delivery Service delivery Customer (Tourist) Passenger Transport (air) Passenger Transport Passenger Transport (land) Passenger transport Passenger Transport (air) Customer (Tourist) I. Before the trip II. During the trip
4 Benefits of Supply Chain Management in Tourism Short- term: Cost saving - Inventory cost - Transport - Obsolescence Long- term: Value creation - Customer satisfaction - Competitiveness - Sustainability
5 Literature review 44 studies found in Scopus, Proquest, EBSCO, ScienceDirect and Google Scholar. Keywords: Hospitality supply chain Tourism supply chain Travel supply chain
6 Trend in TSC research
7 Distribution of TSCM research
8 Focuses in TSC research
9 Where is the TSC research?
10 1. Defining the tourism industry Travel trade Clubs Institutional foodservice Assisted living facility Lodging Restaurants Time share Events Attractions Destination marketing Tourism planning & development Trains Ferries Airlines Bus & coach Car rental Commuters Local travellers Migrants Students Hospitality Industry Tourism Industry Travel Industry Pizam (2009)
11 2. Specify special characteristics of tourism Demand: High seasonality & volatility SARS Outbreak
12 3. Specify special characteristics of tourism Supply - Consists of various parties (Foods, Passenger transport, Tour Agencies, etc.) - Mixtures of Goods & Service - Continuous consumption (during the trip)
13 3. Identify TSC components Note: Critical correlation between TSC components (Tapper and Font 2004, p. 4) Additional critical correlation between TSC components (the authors) Moderate correlation between TSC components (the authors)
14 4. Outlining flow & processes Input providers Foods and Beverage Foods and Beverage Equipment Water & Energy Trip arrangement Direct access via website Via Tour operator Via Travel agency Freight Transport Tourism service providers Lodging Transport Attractions Service Operations Service delivery Physical Flow Passenger Flow Customer (Tourist) Passenger Transport (air) Passenger Transport Passenger Transport (land) Passenger Transport (air) I. Before the trip II. During the trip III. After trip
15 Conceptual Framework Supply chain redesign I. Designs II. Relationships III. Performance measurements Customer value Inventory Strategies Processes Distribution Quartet relationships Competitive advantage Transport Sourcing Facilities Pricing Input Providers Service Providers Tour Agencies Tourists 1. External - Customer satisfaction - Revisit rate 3. Operational - Effectiveness - Efficiency - Responsiveness 2. Financial - Margin - Profitability - P/E ratio 4. Development - Sustainable Collaborations Plan Source Make Deliver Return
16 Research Opportunities 1. Design What is the right tourism supply chain to a particular situation? How can we identify it? 2. Collaboration What type of collaborations existing in TSCs? What are the antecedents and the benefits of collaboration in TSCs? 3. Performance measurement Which aspect that we should consider when measuring TSCM performance? How can we measure supply chain performance in tourism?
17 Research Opportunities 4. Managing risk and uncertainty What are risks and uncertainties of TSCs? How can we measure and mitigate risks in TSCs? 5. ICT and E- commerce How can we design ICT systems in TSCs? How can we identify the right E- business model for a particular TSC?
18 Acknowledgement Chiang Mai University Commission on Higher Education Royal Thai Government Logistics Systems Dynamics Group Cardiff University
19 Thank you for your attentions
20 Back- up Slides
21
22 Intermediaries in the holiday supply chains Hotels Airlines Tour operator Travel agent Restaurants Entertainment Transport Tour operator Direct access via website Customers Source: Adapted from Johnston and Clark (2008, p. 161)
23 Summary of TSCM research (2009)
24 Summary of TSCM research (2008)
25 Summary of TSCM research (before 2008)
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